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Wavegen, the Inverness-based developer of wave power stations, has been acquired by Voith Siemens Hydro of Germany.

Wavegen is looking to raise £10m to develop a wave power scheme on the Faroe Islands, while Lunar Energy is seeking £7m for a demonstration tidal scheme on Orkney.

Wavegen is to receive £2.3m of government funding to develop three shallow-water wave energy devices off the Western Isles.

Wavegen is planning to build a £2.7m floating wave power generator, which would be linked to the Orkney power grid but could be towed to other areas.

Wavegen has raised £5m from a consortium of investors to fund the development of offshore wave generation systems.